Listing ID: 72388
This business has been pre-approved for a loan with buyer only needing 10% down ($135,000). Buyer would take home after paying debt service $369,000. Buyer would earn their down deposit back within 4.5 months!
They are a retail showroom that specializes is fireplace sales. The shop has been a staple in the Bucks Co area for years. Many people have come to depend on them for their fireplace needs. They have an excellent reputation and pride themselves on providing a great product and doing quality work. Honesty and safety have always been pillars for their company. Their market is extremely profitable and has tremendous upside opportunity. There is so much consumer demand and the market is so underserved that profit margins are essentially unlimited.
1-Lots of revenue and growth potential- So many different markets/services someone can branch into. Someone could expand the services side of the business or expand the retail side of things, or both.
2- Strong growing market- Fireplace market is very underserved- Not a lot of competition/shops. Extremely strong demand. They are just hitting the tip of the iceberg, the business/fireplace market has so much potential.
3-Profit margins are great. Niche market that allows for generous margins on product and labor. Business has excellent reputation and people don’t mind paying for expertise.
4-Overhead is low and rent is inexpensive. It can stay this size and operate with high profits OR someone can take it to new heights.
5-The business is located in a strong economic demographic area. Many people with lots of disposable income. People love fireplaces and are willing to spend LOTS of money to make it function and look good.
- Asking Price: $1,350,000
- Cash Flow: $537,045
- Gross Revenue: $1,976,218
- EBITDA: N/A
- FF&E: $260,000
- Inventory: $30,000
- Inventory Included: N/A
- Established: 1970
- Property Owned or Leased:N/A
- Property Included:N/A
- Building Square Footage:N/A
- Lot Size:N/A
- Total Number of Employees:6
- Furniture, Fixtures and Equipment:N/A
The business was established in 1970, making the business 52 years old.
The sale won't include inventory valued at $30,000*, which ins't included in the suggested price.
Why is the Current Owner Selling The Business?
There are all sorts of reasons individuals resolve to sell operating businesses. Nonetheless, the genuine reason and the one they tell you might be 2 completely different things. As an example, they might state "I have a lot of various commitments" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might simply be reasons to attempt to hide the reality of altering demographics, increased competition, current reduction in revenues, or a range of various other reasons. This is why it is really crucial that you not depend entirely on a vendor's word, yet rather, utilize the seller's response in conjunction with your total due diligence. This will paint a more sensible picture of the business's current situation.
Existing Debts and Future Obligations
If the existing company is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Many companies finance loans with the purpose of covering items such as supplies, payroll, accounts payable, and so on. Keep in mind that in some cases this can indicate that revenue margins are too tight. Numerous companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may also be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or may result in penalties if terminated early.
Understanding the Customer Base, Competition and Area Demographics
How do businesses in the location attract new clients? Many times, operating businesses have repeat customers, which create the core of their daily profits. Particular factors such as new competition growing up around the location, road building, and personnel turn over can influence repeat clients as well as negatively affect future earnings. One vital point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Obviously, the more individuals that see the business often, the better the chance to build a returning client base. A final idea is the general location demographics. Is the business situated in a largely inhabited city, or is it situated on the outside border of town? Exactly how might the regional median family earnings influence future revenue prospects?